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Mexico

El Arco Project

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Overview

Mine TypeOpen Pit
StageFeasibility
Commodities
  • Copper
  • Molybdenum
  • Gold
  • Silver
Mining Method
  • Truck & Shovel / Loader
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SnapshotThe El Arco is a world-class copper deposit. The project includes an open-pit mine with a combined concentrator and SX-EW operations.

Southern Copper has completed the environmental baseline study for the mine, concentrator, and industrial facilities and will proceed to submit the Environmental Impact Statement (Manifestacion de Impacto Ambiental “MIA”) to the Secretary of Environment and Natural Resources “SEMARNAT” to request the respective environmental impact permits. Southern Copper is currently preparing studies for the port, power lines, townsites, and auxiliary facilities.

Owners

SourceSource
CompanyInterestOwnership
Grupo Mexico, S.A.B. de C.V. 88.91 % Indirect
Mexicana del Arco, S.A. de C.V. (operator) 100 % Direct
The El Arco Project is wholly-owned by Southern Copper Corporation, Sucursal del Perú, which is a majority-owned, indirect subsidiary of Grupo Mexico S.A.B de CV. (Grupo Mexico). Mexicana del Arco, S.A. de C.V. (Mexarco), a Grupo Mexico/Southern Copper subsidiary company is the in-country holding company.

Contractors

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Deposit type

  • Porphyry

Summary:

The El Arco deposit is considered to be an example of a porphyry copper deposit.

Deposit Dimensions
The deposit has a west–northwest to west–southwest strike and dips steeply to the north. Mineralization extends over an approximate 1,500 x 1,500 m area, with a minimum thickness of >300 m. Mineralization has been drill tested to a depth of approximately 600 m, and remains open at depth.

The copper mineralization is concentrated in a core of potassic alteration in a granodioritic porphyritic stock surrounded by propylitic alteration in andesitic lavas.

The main granodiorite porphyry unit is a wedge-shaped body bound by converging, arcuate, west and west–southwest-striking, north-dipping planar features. These features may be formerly vertical contacts of an intrusive body that were likely overturned and broadly folded during obduction of the arc terrane to the continental margin.

The east end of the granodiorite body is an irregular contact with andesite and the continuity and intensity of mineralization is poorer at this end of the deposit. Small fingers of granodiorite extend from the main body of the granodiorite into the andesite beyond north and south bounding structures.

Quebrada El Arco, which has incised into the western portion of the deposit may be following a cross-fault; however, no clear offset in lithological or grade contacts have been noted to date.

Mineralization
Copper–gold mineralization at El Arco occurs in three sub-horizontal zones.

The topmost zone is an oxide cap. The oxide zone is approximately parallel with the surface topography, has a blanket shape, and an average thickness of 40 m (Echavarri, 1975). The main copper oxide minerals are chrysocolla, malachite, dioptase, argillaceous goethite, copper wad, cuprite and neotocite. Chrysocolla is by far the most abundant copper mineral in the oxidized zone.

Underlying the oxide zone, and parallel to it, is a transition zone varying in thickness from 0– 18 m with an average thickness of 9 m. This zone contains a mixture of both secondary and primary iron and copper oxides and sulfides. Supergene minerals that have been identified are chalcocite, digenite, covellite, native copper and chalcotrichite; however, those minerals contribute little to the value of the deposit.

The primary sulfide zone directly underlies the transition zone and comprises the major portion of the deposit. This zone is lenticular in shape, fingering out at its extremities, with a greater horizontal than vertical dimension. The upper limit of this zone coincides with the present water table. The lower limit is not well defined because exploratory drilling to 600 m bottomed in mineralization grading >0.4% Cu.

Pyrite and chalcopyrite are the most abundant sulfides in this zone with bornite in lesser amounts. Molybdenite, galena and sphalerite are also present. Gold is of economic importance. Copper mineralization occurs in two forms: fracture filling (± 60%) and dissemination as discrete grains (± 40%). About 60% of the copper grades are in the porphyry with the remaining 40% in the andesite wallrock.

At the center of the deposit the total pyrite content is <1% by weight, increasing toward the periphery where it forms a halo with 3–9% by weight (Echavarri, 1972). This halo roughly corresponds to the zone with the most intense propylitic alteration.

A smaller copper–molybdenum–gold–silver deposit to the north of the main granodiorite body is mainly hosted in andesite and occurs above a deeper apophysis of granodiorite, but this apophysis is not well defined by drilling.

Reserves

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Mining Methods

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Comminution

Crushers and Mills

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Processing

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Production

CommodityProductUnitsAvg. AnnualLOM
Copper Cathode M lbs 677
Copper Metal in concentrate M lbs 9,307
Copper Payable metal M lbs 4199,567
Molybdenum Payable metal kt 43
Molybdenum Metal in concentrate kt 43
Gold Payable metal koz 1052,555
Gold Metal in concentrate koz 3,111
Silver Payable metal koz 24,393
Silver Metal in concentrate koz 35,373

Operational metrics

Metrics
Daily mining rate  ....  Subscribe
Daily processing capacity  ....  Subscribe
Annual mining rate  ....  Subscribe
Annual production capacity  ....  Subscribe
Annual processing capacity  ....  Subscribe
Waste tonnes, LOM  ....  Subscribe
Ore tonnes mined, LOM  ....  Subscribe
Total tonnes mined, LOM  ....  Subscribe
Tonnes processed, LOM  ....  Subscribe
* According to 2021 study.

Production Costs

CommodityUnitsAverage
Assumed price Molybdenum USD  ....  Subscribe
Assumed price Copper USD  ....  Subscribe
Assumed price Silver USD  ....  Subscribe
Assumed price Gold USD  ....  Subscribe
* According to 2021 study / presentation.

Operating Costs

CurrencyAverage
OP mining costs ($/t mined) USD  ....  Subscribe
Processing costs ($/t milled) USD  ....  Subscribe
G&A ($/t milled) USD  ....  Subscribe
* According to 2021 study.

Project Costs

MetricsUnitsLOM Total
Initial CapEx $M USD  ......  Subscribe
Sustaining CapEx $M USD  ......  Subscribe
Closure costs $M USD  ......  Subscribe
Total CapEx $M USD  ......  Subscribe
OP OpEx $M USD  ......  Subscribe
Processing OpEx $M USD 7,386
Refining and treatment costs $M USD  ......  Subscribe
Transportation (haulage) costs $M USD 2,033
G&A costs $M USD 861.1
Total OpEx $M USD  ......  Subscribe
Mining Taxes $M USD  ......  Subscribe
Income Taxes $M USD  ......  Subscribe
Total Taxes $M USD  ......  Subscribe
Royalty payments $M USD  ......  Subscribe
Gross revenue (LOM) $M USD  ......  Subscribe
Net revenue (LOM) $M USD  ......  Subscribe
Net Operating Income (LOM) $M USD  ......  Subscribe
Pre-tax Cash Flow (LOM) $M USD  ......  Subscribe
After-tax Cash Flow (LOM) $M USD  ......  Subscribe
Pre-tax NPV @ 10% $M USD  ......  Subscribe
After-tax NPV @ 10% $M USD  ......  Subscribe
After-tax NPV @ 8% $M USD  ......  Subscribe
Pre-tax IRR, %  ......  Subscribe
After-tax IRR, %  ......  Subscribe
Pre-tax payback period, years  ......  Subscribe
After-tax payback period, years  ......  Subscribe

Required Heavy Mobile Equipment

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Personnel

Mine Management

Job TitleNameProfileRef. Date
....................... Subscription required ....................... Subscription required Subscription required Jul 18, 2024

EmployeesYear
...... Subscription required 2021

Aerial view:

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